Sen. Tom Carper said the change is intended to fix failings of the "90-10" rule and protect veteran students from "bad actors."

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WASHINGTON -- Lawmakers led by Sen. Tom Carper introduced legislation Thursday aimed at closing a loophole they say is allowing some for-profit schools to exploit military service members and veterans for their government-paid tuition benefits.

For-profit schools can receive no more than 90 percent of their revenue from federal student aid from the U.S. Department of Education, with the remaining 10 percent coming from other sources.

But because student aid from the Defense and Veterans Affairs departments does not count against that 90 percent limit, some for-profit schools hoping ...